Cloud accounting can be a great saver from the perspective of time and money.
The use of cloud-based software enables companies to manage their accounting, bookkeeping and finance related-activities with ease and efficiency from end-to-end.
But that’s not the only benefit!
While we have previously written about the general benefits of transitioning to cloud accounting, this article examines specifically how businesses in the Philippines can generate real cost and time savings across an organisation through the use of cloud accounting services.
Improves collaboration among employees
Cloud accounting can save internal teams a lot of time when working together on projects, transactions or day-to-day accounting and bookkeeping.
With cloud accounting, less time is wasted exchanging or trying to locate information because everything is available and stored online in the same place.
Staff can access information remotely and in real-time. Less time is spent searching for documents and transferring them between staff because each employee already has access to the information at their fingertips.
The entire accounting and bookkeeping process can be made more efficient when members of a team can work simultaneously on the same task.
This is particularly helpful if some employees are working remotely while other employees are in the office. See our recent article on flexible working arrangements for employees to understand why enabling remote collaboration might now be more important than ever!
Take the bank reconciliation process as an example. Cloud accounting enables two or more staff to work at the same time on the same documents. This really helps when matching bank reports against books of accounts.
Other activities, such as catch up accounting for example, can also be performed more efficiently.
Eliminate delays when closing your books of accounts
Delayed sign-offs on financial reports can cost money.
The longer it takes to generate a financial report, the longer it takes management to review it and the greater the risk of lost opportunities to increase profits or reduce losses.
Business managers and owners can only make informed commercial decisions when they have complete and timely information to hand.
With cloud accounting, financial reports can be generated quickly and efficiently. Once the financial data has been uploaded, it only takes a few clicks to generate an accurate financial report.
Manual work involving various spreadsheets can almost be eliminated.
Companies can easily perform repetitive process-driven tasks such as calculating depreciation of physical assets, amortization of intangible assets or recording inventories post-sale.
As a result, the internal finance team has more time to conduct variance analysis or trends research – i.e. real value added activities.
Cloud accounting enables a company to close its accounting books quickly and start focusing on the strategic direction of the business without delay.
Overheads can be reduced
There is less of a need for physical infrastructure when businesses transition to cloud accounting services.
When documents are stored and processed through an online accounting solution, administrative costs can be reduced. Costs related to purchasing and maintaining physical storage space can also be eliminated.
Depending on how you integrate your cloud accounting systems, you may not have to invest in a server to store your information. If you outsource your cloud accounting system and processes to an outsourced accounting and bookkeeping firm, you only really have to deal with the costs relating to the services contract.
Cloud accounting is a paperless system. So your business can save money on paper, ink, cartridges, folders, courier fees, taxis and other office supplies. These expenses can really add up – particularly for startups!
Cloud accounting solutions provide secure systems that can safeguard a business against the loss of valuable data in cases of system failures, fires, acts of God or even theft.
When your company’s information is stored on a cloud accounting platform, it can be accessed from any place with an internet connection.
So, in the case of accidents, your company data remains secure and accessible. This is really helpful to ensure business continuity.
Contrast this against an unexpected fire causing damage to an office premises where a company’s client information is physically stored!
Further, to safeguard information against data breaches, data stored in the cloud will have encryption and other complex security protocols – a really important consideration in this age of information!
Cloud accounting can save a company having to e-mail back and forth with their accountants or bookkeepers. With the user-friendly and self-servicing nature of cloud accounting solutions, a company can view, edit, customize and generate their own reports at any time from any place.
Cloud accounting interfaces can be easy to understand and navigate. Cloud accounting providers usually provide online tutorials on using their products.
By investing a little time to learn the capabilities of the cloud, managers and owners can use the information stored on the platform to generate their own reports, analysis and forecasts about their business.
What’s more? Data from the cloud can easily be tracked across different devices. Information is available 24/7 (to those who have been granted access). Quickbooks Online and Xero are just a few of the cloud accounting solutions used by CloudCfo.
No more lost time waiting for your accountant or bookkeeper to return from holidays!
Do you need cloud accounting in the Philippines?
CloudCfo can help you understand the benefits that cloud accounting can bring to your business.
CloudCfo is an outsourced provider of accounting, bookkeeping and finance services for companies in the Philippines. All of our services are enabled through cloud accounting. We are experts in this area.
The CloudCfo teams are led by professional CPAs committed to providing the highest levels of service in outsourced accounting, bookkeeping and finance.